We are pleased that the Globe and Mail’s new national real estate section issued every Friday will feature coverage of Canada’s largest real estate markets, with a particular focus on Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal. The first issue, December 1, 2017, referenced ‘Calgary housing initiative combines smart architecture with a clever loan program to combat Canada’s affordability crisis’, the push for rental-only zones and lots of discussions on purpose built rentals.
As mentioned last month, the 2017 Fall Rental Market Rental Report is available. Richard Cho, Principal, Market Analysis (Calgary) says “The rise in rental demand outpaced the elevated number of new purpose-built rental units added to the market, pushing the vacancy rate down.” The overall vacancy rate decreased to 6.3% and the average rent is down by 1.6% to $1128 per month. This is directionally useful information however in Citysearch’s markets, the outlook is somewhat different. We look at individual communities and most often ‘unique properties’; the type and caliber of properties in Citysearch’s portfolio do not typically fit into the categories CMHC uses. The report confirms that gains in employment and positive international migration contributed to a rise in rental demand. Most new comers tend to rent before buying. Still the unemployment rate remains elevated and above the national average… the positive is that most people are employed which is a good thing!
The rental condominium apartment vacancy rate is lower as compared to the purpose built apartments and are relatively unchanged and stable at 3.8% in 2017 as compared to last year. The report says that the demand for rental condominium apartments has kept up with the increase in supply. Investor owned condominium units increased from 18,172 units in October 2016 to 21,753 units in October 2017. In 2017 to date, the average rent for a two bedroom apartment condominium was $1512 compared to $1247 in the purpose built rental market. Apartment condominiums tend to yield higher rents as they typically offer preferred amenities such as in-suite laundry, common areas, concierges, are newer or have newer features to name a few.
Through our experience in representing and marketing the finest properties in Calgary and area, we believe that every property regardless of neighborhood or price point, has an intrinsically unique story. We invite you to discover some of these properties and stories in our future newsletters. All issues will provide our insights, some input from visionaries in business and more.
Please visit us at www.citysearchcalgary.com for access to some of our finest properties. Whether you are looking today or in the future, we hope to offer you a rich experience.
Lisa Hamielec, P.Eng.
Citysearch Rental Network Inc.